On 4 September 2010, the Ministry of Finance published on its website the draft proposed amendments to the tax laws. The most important amendments with regard to withholding taxation are summarized below. Interest and Royalties Directive Bulgaria avails of an 8-year transitional period for implementing the EU Interest and Royalties Directive (2003/49). Under the transitional period: -   for the first 4 years after 2007: the withholding tax rate on interest and royalties between associated companies must not be higher than 10%; and -   for the 4 years after 2011, this rate is reduced to 5%. The proposal provides...